1. 15-1 Chapter Questions What is a marketing channel system and value network? What work do marketing channels perform? What decisions do companies face in managing their channels? How should companies integrate channels and manage channel conflict? What is the future for e-commerce?

2. 15-2 Marketing Channels Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

3. 15-3 Examples of Channels Dell (DTC) Avon Canada Post Grainger (auto parts network) Coca-cola (bottlers) McDonald’s restaurants (franchisee)

4. 15-4 Increasing Efficiency

5. 15-5 Consumer Marketing Channels

6. 16-6 Wholesaling Functions Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling

7. 15-7 Identifying Channel Alternatives Types of intermediaries Number of intermediaries Terms and responsibilities

8. 15-8 Channel Service Outputs Lot size Waiting/delivery time Spatial convenience Product variety Service backup

9. 16-9 Major Wholesaler Types Merchant Full-service Limited-service Brokers and agents Manufacturers Specialized

10. 16-10 Wholesalers’ Marketing Decisions Target market Product assortment Price Promotion Place

11. 15-11 Number of Intermediaries Exclusive Selective Intensive

12. 16-12 Market Logistics Planning Deciding on the company’s value proposition to its customers Deciding on the best channel design and network strategy Developing operational excellence Implementing the solution

13. 16-13 Transportation Factors Speed Frequency Dependability Capability Availability Traceability Cost

14. 16-14 Retailing Includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use.

15. 16-15 Retail Positioning Map

16. 16-16 Department Store Model: Strong Retail Brand Approach

17. 16-17 Department Store Model: The Showcase Store

18. 16-18 Location Decision General business districts Regional shopping centers Community shopping centers Strip malls Location within a larger store

19. 16-19 Indicators of Sales Effectiveness Number of people passing by % who enter store % of those who buy Average amount spent per sale

20. 15-20 e-Commerce Marketing Practices Pure-click Brick-and- click Brick-and- mortar

21. 15-21 Buyer Expectations for e-commerce Ability to order a product online and pick it up at a convenient retail location Ability to return an online-ordered product to a nearby store Right to receive discounts based on total online and offline purchases